Diversification and control in emerging markets: The case of Chilean firms
Author
dc.contributor.author
Jara Bertín, Mauricio
Author
dc.contributor.author
López Iturriaga, Félix
Author
dc.contributor.author
Espinosa, Christian
Admission date
dc.date.accessioned
2015-12-10T14:16:49Z
Available date
dc.date.available
2015-12-10T14:16:49Z
Publication date
dc.date.issued
2015
Cita de ítem
dc.identifier.citation
BRQ Business Research Quarterly (2015) 18, 259---274
en_US
Identifier
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2340-9436
Identifier
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DOI: 10.1016/j.brq.2015.01.002
Identifier
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https://repositorio.uchile.cl/handle/2250/135594
General note
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Articulo de publicación ISI
en_US
Abstract
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We analyze the effect of two types of corporate diversification (business diversification
and ownership diversification) on the market value of the Chilean firms. For a sample
of 83 nonfinancial firms listed on the Santiago Stock Market from 2005 to 2013, we find a discount
for both business and ownership diversification, which is consistent with that reported
for other economic or institutional settings. Second, we find that the business diversification
discount is related to the ownership structure and is due to the excess of the largest shareholders’
control rights. Third, we find that the ownership diversification discount becomes
a premium when the ownership diversification enables the control of the affiliated firms. This
effect can be explained by the improvement of internal capital markets that allows overcoming
the limitations of Chilean external capital markets
en_US
Patrocinador
dc.description.sponsorship
Chilean Fondecyt Grant
11110021
Spanish Ministry of Science and Innovation
ECO2011-29144-C03-01